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As Dogecoin lifts off from the support trendline, the breakout rally chances for the biggest meme coin are increasing. Will the uptrend in $DOGE surpass $0.10?
With the Bitcoin price stuck near $55K, the altcoin segment maintains a correction trend. Despite the minor-term recovery, top altcoins are under a bearish pattern. Amid this, Dogecoin prepares a bull cycle within a falling wedge for a breakout rally. Will it work out as the broader market sentiment struggles to recover?
$DOGE Within The Fences of a Wedge
In the daily chart, Dogecoin is forming a falling wedge pattern. Since hitting a yearly peak at $0.22899 on March 28, 2024, it has dropped to a 52-week low of $0.08049, marking a 64.85% decline.
Despite this drop, Dogecoin avoids a closure below the support trendline, resulting in a prolonged trapped movement. Recently, the coin has experienced a three-day recovery, rising by 6.72% to its current price of $0.09865.
This recent uptick puts Dogecoin on the cusp of reversing a 5.96% decline observed on Friday, which resulted in a bearish engulfing candle.
Analyst Points Out Dogecoin’s Potential Breakout
In a similar price analysis, Ali Martinez hints at a potential breakout for Dogecoin, emphasizing a bullish outlook. He suggests keeping an eye on the falling wedge pattern on the $DOGE daily chart. According to Martinez, a sustained close above $0.10 could trigger a bullish rally, potentially pushing the price to $0.15.
Dogecoin is currently approaching the $0.10 psychological level. If $DOGE surpasses this mark, it could significantly enhance breakout prospects and positively impact market sentiment.
Dogecoin Crucial Price Levels
With the recovery rally gaining momentum, the MACD indicator signals a potential bullish crossover as the MACD line approaches the signal line. According to pivot levels, immediate resistance is positioned at $0.10161, aligning with the middle pivot point.
Should Dogecoin break out of the falling wedge pattern, it could test the R1 and R2 pivot levels at $0.12273 and $0.14419, respectively. Conversely, a bearish reversal would intensify pressure on the long-standing support trendline, increasing the risk of a breakdown.
In the event of a decline, crucial support levels for Dogecoin are at $0.08015 (S1) and $0.05903 (S2).